June 14 (Renewables Now) - The Overseas Private Investment Corporation (OPIC) has approved USD 87 million (EUR 77.1m) in financing for Lekela Egypt Wind Power BOO SAE’s 250-MW wind project in the Gulf of Suez.
The US government’s development finance institution said on Wednesday its commitment will mobilise over USD 250 million in additional financing for the project. The funds will be allocated to develop, build and operate the proposed wind farm, which will consist of 73 turbines of 3.6 MW each, located northwest of the town of Ras Ghareb. Its commissioning is scheduled for 2021.
The overall investment required for the scheme is estimated at USD 325.7 million. A power purchase agreement (PPA) with the Egyptian Electricity Transmission Co (EETC) was signed in February.
The project will help Egypt diversify its energy mix, lower electricity costs and help it tackle its aging power infrastructure issues. OPIC’s acting president and CEO David Bohigian pointed out that energy security is a “critical barrier” to sustainable growth in Egypt.
Lekela Egypt Wind Power is a unit of Lekela Power, which is in turn a 60/40 joint venture between private equity firm Actis and a consortium led by Ireland-based wind and solar developer Mainstream Renewable Power.
(USD 1.0 = EUR 0.887)